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Key Points

HRCP has strongly criticized Pakistan’s 2025-26 budget for failing to raise the minimum wage despite soaring inflation. The budget allocates shockingly low funds to healthcare, education, and social protection compared to regional peers. Economist Fahd Ali highlighted that 45% of Pakistanis live below the poverty line, making this budget a blow to social justice. HRCP demands urgent reforms to prioritize marginalized communities’ rights and dignity.

Key Points: HRCP Slams Pakistan Budget for Frozen Wages Amid Soaring Inflation

  • HRCP condemns stagnant minimum wage at PKR 37,000
  • Social sector funding lags behind regional peers
  • 80% of Sindh industries flout wage laws
  • Lawmakers’ salaries rise while workers struggle
3 min read

HRCP slams Pakistan's 2025-26 budget for freezing minimum wage and short-changing social sectors amid soaring inflation

HRCP criticizes Pakistan’s 2025-26 budget for ignoring minimum wage hikes and underfunding social sectors despite inflation crisis.

"This budget reflects a concerning lack of commitment to social justice and human dignity. – Fahd Ali, HRCP"

Islamabad, June 19

The Human Rights Commission of Pakistan (HRCP) has expressed significant concern regarding the 2025-26 federal budget's impact on the economic and social rights of the nation's most vulnerable populations. HRCP highlighted that the budget provides minimal support for low-income groups who are already coping with the ongoing inflation crisis that began in 2022 and extended through 2024.

While the government has made a slight reduction in income tax rates for salaried workers, this relief is insufficient to replenish the diminished purchasing power of working-class families. More concerning is the choice not to increase the federal minimum wage, which remains fixed at PKR 37,000 per month, a sum that does not cover the basic living expenses for a household of six.

Even in provinces such as Punjab and Khyber Pakhtunkhwa, where the minimum wage has been raised to PKR 40,000, this adjustment fails to make up for the losses in real income due to inflation. Furthermore, compliance remains critically low, with reports indicating that 80 per cent of industries in Sindh are not adhering to minimum wage regulations, as noted in the HRCP post.

Funding for vital social sectors--healthcare (0.96 per cent of GDP), education (1.06 per cent), and social protection (1.1 per cent)--is significantly below international standards and regional comparisons. In comparison, countries like India, Sri Lanka, and Bangladesh allocate a much higher percentage of their GDP towards these crucial services, as highlighted by the HRCP post.

During a press briefing held by HRCP earlier today, economist Fahd Ali emphasized that with 45 percent of Pakistan's population living below the poverty line and 88 percent earning under PKR 75,000 a month the amount HRCP recommends as a living wage this budget reflects a concerning lack of commitment to social justice and human dignity, according to the HRCP post.

https://x.com/HRCP87/status/1935340023093588299

HRCP secretary-general Harris Khalique expressed his profound disappointment regarding the finance minister's choice not to increase the minimum wage, despite announcing a 'significant and disproportionate raise' in parliamentarians' salaries, as noted in the post.

HRCP called on both federal and provincial governments to reassess their budgetary priorities and ensure that 'economic recovery strategies focus on the rights and needs of Pakistan's most marginalised groups.' Without sufficient investment in public health, education, and a robust social safety net, the promise of equal citizenship remains unfulfilled for millions. The right to live with dignity cannot be compromised for the sake of fiscal restraint; it must be a central focus.

- ANI

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Reader Comments

Here are 6 diverse Indian perspective comments on the Pakistan budget issue:
R
Rahul K.
This is really sad to see. While we have our own economic challenges in India, at least our minimum wage policies try to keep pace with inflation. How can a family survive on PKR 37,000 in today's times? Pakistan's leaders should prioritize people over politics. 🇮🇳🤝🇵🇰
P
Priya M.
The contrast with India's social sector spending is striking. We allocate 2.1% of GDP to health and 3% to education. While still not enough, it shows Pakistan is falling behind even regional standards. Common people suffer the most in both countries when budgets favor elites.
A
Amit S.
Raising MP salaries while freezing minimum wage? Sounds familiar - we've seen similar tendencies in India too. Politicians everywhere seem to forget they're public servants. At least our state governments regularly revise minimum wages based on inflation.
S
Sunita R.
Heartbreaking to see our neighbors suffering like this. No matter our political differences, the common man's struggle is the same on both sides of the border. Hope Pakistan's civil society can pressure the government like our activists do here. More power to HRCP! ✊
V
Vikram J.
The 80% non-compliance with minimum wage in Sindh is shocking! In India, we have strong labor laws but implementation is weak too. Maybe both countries should learn from Bangladesh's progress in workers' rights and social sector development.
N
Neha P.
While criticizing Pakistan's budget, we should also look at our own shortcomings. Many Indian states have minimum wages below living standards too. Let's not be hypocritical - economic justice should be a priority across South Asia. #Solidarity

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